Shilpa Medicare gains on overseas acquisition

Shilpa Medicare gained 0.66% to Rs 76 at 15:30 IST on BSE after the company said it has acquired Austrian firm LOBA Finchemie.

The stock hit a high of Rs 90.10 and a low of Rs 73.30 so far during the day. The stock had a 52-week high of Rs 130.40 on 11 September 2007 and a 52-week low of Rs 59.85 on 24 March 2008.

The company’s current equity is Rs 3.47 crore. Face value per share is Rs 2.

The current price of Rs 76 discounts its Q3 December 2007 annualized EPS of Rs 7.08, by a PE multiple of 10.73.

Shilpa Medicare’s net profit rose 57.4% to Rs 3.07 crore on 47.9% growth in net sales to Rs 24.57 crore in Q3 December 2007 over Q3 December 2006.

LOBA is an ISO 9001 certified company, approved by Austrian Ministry of Health and US Food and Drug Administration (USFDA) for good manufacturing practice (GMP) for production of active pharmaceutical ingredients (APIs). Following this acquisition, Shilpa Medicare will access the highly regulated markets of Europe and US.

Shilpa Medicare manufactures pharmaceuticals and APIs related to the oncology and non-oncology segments. Oncology refers to the branch of medicine that deals with tumors, including study of their development, diagnosis, treatment and prevention.